COMPETITIVE INTENSITY AS A MODERATOR IN THE LINK BETWEEN CUSTOMER RELATIONSHIP MANAGEMENT TECHNOLOGY AND FIRM PERFORMANCE IN THE HOTEL INDUSTRY

Stiff competition in the hotel industry has generated a high level of uncertainty. Consequently, to retain customers, firms in the hotel industry have incorporated CRM technology to achieve competitive advantage. CRM... [ view full abstract ]

Stiff competition in the hotel industry has generated a high level of uncertainty. Consequently, to retain customers, firms in the hotel industry have incorporated CRM technology to achieve competitive advantage. CRM technology is engaged to capture information on customers which hotels used to offer customized services. This study sought to establish the moderating effect of competitive intensity on the link between CRM technology and performance of selected hotels in Kenya. The study employed explanatory research design and sampled 330 respondents selected using cluster and simple random sampling. Data was collected using structured questionnaires and analysed using descriptive and inferential statistics. CRM technology (β_a=0.178, ρ<0.05) had a positive and significant effect on performance. Further, competitive intensity had a moderating effect on the relationship between CRM technology (β_b=0.39, ρ<0.05) and performance. The paper concludes that use of CRM technology is one of the greatest opportunities in the hotel industry to enhance performance.